𝐌𝐲 𝐛𝐢𝐠𝐠𝐞𝐬𝐭 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭𝐬
3. $PLUS.L (PLUS 500 LTD)
A quality business in the portfolio. It is getting expensive (relatively).
𝐓𝐡𝐞 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬:
Plus500 is a fintech company, operates technology-based trading platforms in Europe, the United Kingdom, Australia, and internationally.
Plus500 has a premium listing on the Main Market of the London Stock Exchange (symbol: PLUS) and is a constituent of the FTSE 250 index.
𝐅𝐮𝐧𝐝𝐚𝐦𝐞𝐧𝐭𝐚𝐥𝐬:
- market capitalisation: 2,26bn USD
- revenue (2023): 726mil USD
- EBITDA margin: 47%
- cash position: 985mil USD
- over 233.000 active customers
- no debt!
The business model is a scalable one, that is why we have seen a lot of expansion in every region of the world with the latest one in UAE. Also the number of new customers are increasing, hand in hand with the total deposits.
Plus500 in the current high interest rate environment generates money with the deposits of the customers by buying short term bonds.
The industry is estimated to grow with 6,4% in the next years, while the company is expected to slow down its grow for the next year.
Currently is trading above the average ratios, but it can be explained by the good growth rate and healthy business.
It is again a growth company with a good reward for its shareholders. The market likes the industry and the company.
𝐑𝐢𝐬𝐤𝐬:
- no more growth if the expansions are over
- lower trading activity (in a recession)
- less return for the shareholders. We were rewarded good in the past with dividends and strong buybacks.
- competition. Even with the strong margins, the customers could be stolen with promotions, lower fees/spreads, etc.
I will keep the position in the company which currently is bringing us a 25% profit on the investment.
Half year results will be published on 19th of August 2024.
source:
investors.plus500.com
tikr.com
$IBKR (Interactive Brokers Group)$ADM.L (Admiral Group)... Show More
